Sumitomo-invested 1.32 GW power plant to start operations next August
The 1.32 GW Van Phong 1 coal-fired power plant, invested by Japan’s Sumitomo Corporation, is set to begin commercial operations in August 2023.
The $2.58 billion project is being developed in Vietnam’s central province of Khanh Hoa on a build-operate-transfer (BOT) basis by Van Phong Power Company, a wholly-owned subsidiary of Sumitomo Corp.
Van Phong 1 power plant and the onsite Van Phong switchyard. Photo courtesy of Van Phong Power Company.
The project’s first generator is slated to start commercial operations next August, while the second will follow in December 2023, according to the subsidiary.
The power generated by the plant will be transferred to the national grid across 500 kV transmission lines from the onsite Van Phong switchyard, which is already available for use. The plant’s electricity output will be sold to state-owned utility Vietnam Electricity (EVN).
The power plant is located within the Van Phong Special Administrative-Economic Zone (SAEZ) in Khanh Hoa. A consortium of four companies, namely Toshiba Energy Systems & Solutions Corporations, IHI Corporation, CTCI Corporation, and Doosan Heavy Industries & Construction, was awarded the engineering, procurement and construction (EPC) contract for the project in August 2019.
In another development, a new EPC contractor will be selected for the 1,200 MW Long Phu 1 thermal power plant project in the Mekong province of Soc Trang. State-run Petrovietnam is the project owner and developer.
The former EPC contractor was Power Machines. The Russian company announced an end to the contract in February 2019 after the U.S. Department of Treasury imposed sanctions against it in January 2018.
The project’s management unit has rescheduled the project’s development stages and expects completion in 2026.
Petrovietnam has called on other companies to take over the EPC contract, with three contractors showing an interest, according to the oil and gas group.
Meanwhile, in the north, the Petrovietnam-invested 1.2GW Thai Binh 2 thermal power plant in Thai Binh province has provided more than 199 megawatts-hour this year during its trial run.
The plant’s first generator is expected to start commercial operations during the final days of this year, while the second generator will be approved to do so next month.
- Related News
- Read More
Agribank advances ESG implementation, strengthening foundation for sustainable development
As sustainable development becomes an increasingly important requirement for the financial and banking sector, Agribank is steadily reaffirming its development orientation aligned with environmental, social, and governance (ESG) principles.
Companies - Fri, May 22, 2026 | 4:24 pm GMT+7
Two Hermes bags of convicted tycoon Truong My Lan fetch $531,000 at auction
Two luxury Hermes handbags belonging to tycoon Truong My Lan, chairwoman of Van Thinh Phat, were successfully auctioned in Ho Chi Minh City, generating more than VND14 billion ($530,970) for asset recovery efforts tied to one of Vietnam’s largest financial fraud cases.
Companies - Fri, May 22, 2026 | 4:09 pm GMT+7
Vietnam’s cosmetics retail market keeps expanding but at slow pace
Vietnam’s cosmetics retail market continued expanding in 2026, though the pace of store openings has begun to moderate after years of rapid growth, according to market research firm Q&Me.
Economy - Fri, May 22, 2026 | 3:53 pm GMT+7
Major Vietnam conglomerates deepen presence in agriculture sector
The growing presence of both long-established agricultural companies and newly participating private conglomerates is reshaping Vietnam’s agriculture sector into a more diversified industry landscape.
Companies - Fri, May 22, 2026 | 3:27 pm GMT+7
Tai Tam expands energy portfolio with $70 mln wind power project in central Vietnam
A nearly VND1.85 trillion ($70.26 million) wind power project in Gia Lai province marks a new step in Tai Tam Group JSC’s strategy to expand its renewable energy ecosystem.
Energy - Fri, May 22, 2026 | 11:38 am GMT+7
Vietnam's wealth management market offers hundreds of billions of US dollars in growth potential
As Vietnam’s middle class expands rapidly and demand for wealth accumulation rises, the country’s wealth management market is entering a strong growth phase, with potential to reach hundreds of billions of U.S. dollars in the coming years.
Finance - Fri, May 22, 2026 | 10:47 am GMT+7
Winner Medical starts building $61 mln medical supplies plant in northern Vietnam
Nature Health Development International Co. Ltd, a Hong Kong-based subsidiary of China's Winner Medical, has broken ground on a medical supplies manufacturing plant worth over VND1.5 trillion ($60.5 million) in Vietnam’s northern province of Quang Ninh.
Investing - Fri, May 22, 2026 | 7:48 am GMT+7
Dragon Capital Vietnam veteran Tran Thanh Tan steps down as vice chairman
Dragon Capital Vietfund Management (DCVFM), a subsidiary of Vietnam-focused asset manager Dragon Capital Group, has approved the resignation of Tran Thanh Tan from his position as vice chairman, marking a major leadership transition at one of Vietnam’s oldest foreign fund management firms.
Finance - Thu, May 21, 2026 | 5:09 pm GMT+7
M&A set to drive Vietnam’s hospitality market in 2026
Analysts expect mergers and acquisitions (M&A) to accelerate sharply in Vietnam’s hotel and resort sector in 2026, particularly in the four-star and five-star segments in Hanoi and Ho Chi Minh City, as tourism recovery strengthens and investors hunt for premium assets.
Real Estate - Thu, May 21, 2026 | 4:01 pm GMT+7
Vietnam’s convenience store boom shifts beyond major cities as chains race for scale
Vietnam’s convenience store and mini-supermarket sector is expected to post another year of rapid expansion in 2026, driven by aggressive store openings from leading retail chains and a strategic push into smaller cities and rural areas, according to market research firm Q&Me.
Companies - Thu, May 21, 2026 | 3:26 pm GMT+7
Phat Dat seeks shareholder approval for Thu Thiem Eco Smart City investment
Phat Dat Real Estate Development Corporation (HoSE: PDR) is seeking to become a strategic investor in the Thu Thiem Eco Smart City project developed by South Korean-backed Lotte Properties HCMC in Ho Chi Minh City.
Real Estate - Thu, May 21, 2026 | 1:38 pm GMT+7
The end of the ‘cash cow’ era: Central Vietnam condotels give way to luxury apartments
After a boom period fueled by attractive profit commitments, the condotel segment in Vietnam’s central city of Danang has entered a prolonged downturn, while the high-end apartment segment is rapidly gaining momentum as the new focal point of the coastal urban real estate market.
Real Estate - Thu, May 21, 2026 | 11:35 am GMT+7
Marubeni becomes shareholder of Amata subsidiary in northern Vietnam
Marubeni Corporation has completed procedures to acquire a 20% stake in Amata Ha Long, a subsidiary of Thailand’s Amata Corporation, the companies said during a meeting with Quang Ninh authorities on Tuesday.
Companies - Thu, May 21, 2026 | 10:07 am GMT+7
Systemic liquidity pressure: Interest rates in Vietnam unlikely to fall further
Rising liquidity pressures are making it increasingly difficult for Vietnam’s deposit interest rates to decline further in 2026, with many commercial banks maintaining rates for 6-12 month deposits at around 6.5-7.8% per year.
Banking - Thu, May 21, 2026 | 8:00 am GMT+7
Danang airport starts $57 mln terminal expansion
Vietnam's central city of Danang has started construction on a nearly VND1.5 trillion ($56.88 million) expansion project for the international passenger terminal (T2) at Danang International Airport, as the city seeks to ease congestion and strengthen its position as a regional tourism hub.
Infrastructure - Wed, May 20, 2026 | 9:23 pm GMT+7
Petrovietnam names Le Manh Cuong as CEO
State-owned giant Petrovietnam has appointed Le Manh Cuong as CEO, elevating a longtime industry executive with more than three decades of experience across Vietnam’s offshore energy and oil-services sector.
Companies - Wed, May 20, 2026 | 4:49 pm GMT+7
